Former Coinbase executive Balaji Srinivasan transforms troubled Forest City development into a laboratory for blockchain-based governance and startup societies in Malaysia.
Bloomberg reported that a radical experiment in crypto governance is unfolding in Malaysia’s Forest City. The project explores how cryptocurrency and shared ideology might redefine citizenship.
Network School Emerges in Forest City
Tech entrepreneurs and crypto innovators are testing whether blockchain-based nations can replace traditional territorial models. Nearly 400 students have flocked to this reclaimed island development.
They participate in Network School, an ambitious project spearheaded by Balaji Srinivasan, former chief technology officer of Coinbase Inc. The program charges participants $1,500 monthly for shared accommodations. Students explore decentralized governance alongside longevity science.
Forest City was originally designed to house millions. Currently, it hosts only a fraction of that population. However, this provides an ideal testing ground for Srinivasan’s vision of “startup societies.” Technological beliefs rather than historical borders should define these communities. Moreover, they emphasize cryptocurrency adoption over traditional citizenship models.
The curriculum blends practical coding sessions with ideological seminars. Students examine everything from Singapore’s statecraft to blockchain governance mechanics. Mornings focus on building crypto projects. Afternoons involve debating theories about decentralized autonomous organizations. Additionally, students discuss digital sovereignty concepts.
The campus mirrors Silicon Valley’s health obsession. It features commercial-grade fitness facilities and protein-heavy diets, which draw inspiration from longevity movements. Furthermore, the environment encourages both physical and intellectual development.
From Silicon Valley Exit to Malaysian Experiment
Srinivasan’s journey from venture capitalist to nation-state theorist began at Andreessen Horowitz, where he spent five years as a general partner before joining Coinbase in 2018. His 2013 Y Combinator speech gained significant attention in tech circles. The speech advocated Silicon Valley’s “ultimate exit” from the US. He argued that traditional nation-states had become obsolete barriers to innovation.
The Network State concept was fully articulated in his 2022 eponymous book. It proposes that online communities united by shared values can form new decentralized states. These communities would leverage cryptocurrency and digital tools. “Network states” would exist across multiple geographic locations. Blockchain technology and internet infrastructure would bind them together. Ultimately, they would seek diplomatic recognition from existing governments.
Forest City’s appeal extends beyond low rental costs. Its proximity to Singapore’s international airport adds convenience. Malaysian authorities have implemented various incentives to revitalize the development. These include duty-free status and zero-percent tax rates for family offices. Consequently, the environment becomes conducive to regulatory experimentation.
While the students welcome the initiative as transformative and visionary, critics are concerned that it only reflects genuine charitable impulses. The success of Network School’s experiment may determine the viability of the blockchain governance model, suggesting practical political alternatives.